Date till 31st December to add nominee from SEBI Demat Account and Mutual Fund Account,
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| Demat account |
What are the benefits of linking a nominee to a Demat account?
The Securities and Exchange Board (SEBI) has given a deadline of December 31 to add nominees from demat accounts and mutual fund accounts. While this period expired on March 31, 2023, it has been extended till December 31.
Enrollment of a nominee in a demat account is an important process that enables the investor to hand over his assets to his legal heirs. Nominee is the person who is authorized to manage the assets in the demat account of the investor after his death.
To add a nominee to a demat account, the investor should contact his demat account holding company. The company receives the necessary documents from the investor and submits the nomination application.
To add a nominee to the mutual fund account, the investor should contact his mutual fund company. The company receives the necessary documents from the investor and submits the nomination application.
Demat accounts and mutual fund accounts that do not add a nominee by December 31 may be frozen.
Required documents for inclusion of nominee,
Investor's Identity Document (School / College / ID Card, Passport, Voter ID Card etc.)
Identity document of the nominee
Signature of Investor
Steps to Add Nominee,
- 1. Investor should contact his demat account holding company or mutual fund company.
- 2. The company will obtain the necessary documents from the investor.
- 3. The company will receive the nomination application from the investor.
- 4. The company will send nomination application to SEBI.
- 5. If SEBI considers the nomination application and accepts it, a notification is sent to the investor that the nominee has been included.
Advantages of adding a nominee,
After the death of the investor his assets are transferred to his legal heirs.
Property problems will be avoided.
Legal processes will be facilitated.
Therefore, investors who wish to add nominees to demat accounts and mutual fund accounts should do so by December 31.